Ann Arbor Real Estate Talk

When the Missy Caulk TEAM works with buys moving into Michigan we are asked frequently what the SEV and TV mean when they look at the MLS listing ticket.

SEV is the State Equalized Value, this is reset when you transfer the deed to a new home owner. It is typically at 1/2 the Sales Price of the Home.

TV (Taxable Value) is the what the amount of taxes you pay is based on. In 1994 the State of Michigan changed the way property taxes are calculated based on what is commonly known as Proposal A.  According to Proposal A, you can not be accessed each year more than the rate of inflation or a top of 5%.

If you have been a long time home owner in Michigan, the SEV and the TV can look quite different. At the peak of our market in Ann Arbor the SEV would be much higher than the TV. As a home would sell, the municipalities would reset the SEV to the sale price divided by 2. (usually) Some municipalities would take a look at the overall value of the neighborhood and access you at that amount.

The amount you need to be concerned about is the TV as that is what you are paying your taxes on.

The last few year, I noticed across the Washtenaw County area, due to the falling prices that in many areas  the SEV and the TV were equal.

Up until the last few years, in the Ann Arbor, Washtenaw County area we paid our taxes twice a year. We got a summer tax bill and a winter tax bill. That has slowly been changing as the winter taxes have been slowly been being added to the summer tax bill. That is when the schools take their operating budgets.

The State of Michigan provides a Michigan Property Tax Estimator and it is easy to use. Although it is not 100% accurate it is pretty darn close. You can use it to look at Homestead and Non-Homestead taxes for a home you are buying in Ann Arbor.

Non-Homestead taxes are vacation homes, second homes, investment homes.

Homestead is your primary residence.

This chart is from 2005 but the process is still the same. (Courtesy State of Michigan)

I know they are confusing when you are looking for a home to buy in Ann Arbor, but anyone on our TEAM explain it.

If you are a buying a home in Ann Arbor, give your lender a quick call to verify your Pre-Approval.

Why Should I Get Pre-Approved Again?

When a lender qualifies you for a home purchase, they look at your debts, income, credit scores and the interest rates to give you an amount of a new mortgage you will qualify to finance.

Rates have jumped .75% the last 6 weeks. Give your lender a quick call to verify you are still qualified for that amount.

Example of the Difference in Payments

Here is an example of how your payment can change based on the % of interest you will pay.This is based on a $200.00o  loan with 3.5% down. This example is an FHA loan. More and more homeowners are using FHA loans to finance in Ann Arbor especially first time home buyers.

Back in mid-November rates were approximately 4.17%.

Today they are between 5 and 5 1/4%

In November if you purchased your home at the 4.17% rate with 3.5% down, your monthly payment would have been $940.43, principal and interest.

Today if you purchased that same home at 5.00%, with 3.5% down,  your monthly payment would be $1036.06, principal and interest.

Now to many folks, this payment of almost $100.00 more will not make any difference but to some $95.63 a month could change the price of the home you can afford to purchase.

Predicting the Future

I don’t have a crystal ball to tell you what is going to happen to interest rates in the next few months, but .75% jump in 5 weeks is a strong indicator that interest rates will rise.

Homes for Sale in Ann Arbor

When buying a home in the Ann Arbor Area, there are numerous styles of homes to choose from. Obviously some styles are more popular than others.

In the Ann Arbor Area, 2 story, colonials are the most popular and sell for the highest price per square feet. Actually the 3 story homes sell for about $10.00 more a square foot but there are not very many of them.

Many buyers purchase a home and are thinking of resale value. Hope this chart by Pete Hendershot of Affinity Valuations is helpful.

The chart also compares the price per square foot by style for 2009 and 2010.

Finding the right home to live in around Ann Arbor is the most important consideration, but resale in important too.

Price Per Square Foot in Ann Arbor (annarborrealestatetalk.com)

I found this funny little YouTube video on pushy Realtors.

Missy Caulk & TEAM in Ann Arbor Michigan area is not pushy, it is your home, your finances and you have to love the house or we keep looking.

This is one reason why we love Social Media so our future clients can get to know us better, trust us and want to do business with us.

Enjoy and have a great weekend.

Ann Arbor Area home buyers, the clock is ticking if you want to claim the $8000.00 tax credit for first time home buyers. If you are a move up buyer you can claim up to $6500.

But, the clock is ticking for Ann Arbor home buyers.

• You must be under contract with a seller by April 30th.

• You must close by June 30th.

• Ann Arbor Area MLS homes for sale.

Ann Arbor Area House Search

Saline Schools Home Search

Dexter Schools Home Search

Chelsea Schools Home Search

I don’t usually push my home and condo search site, but with the Home Buyer Tax Credit coming to a close, (80 days) I wanted to give you the links to search for homes. The credit expires on June 20th. You must be under contract by April 30th.